Two substantial adjoining industrial properties in the sought-after Wairau Valley area of Auckland’s North Shore are on the market, one for the first time in 26 years.
The warehouse and yard properties are for sale with new three-year leases from 1 March 2021 to national tenant, Thermosash Commercial, which is looking to relocate to a larger premise to support its business growth.
The short-term leases will provide secure holding income for an owner-occupier seeking new premises, or an add-value investor or developer looking to reposition the properties.
Colliers International has been exclusively appointed to market 37-41 Poland Road and 20 Hillside Road, Wairau Valley, for sale by deadline private treaty closing at 4pm on Wednesday December 2, unless sold earlier.
“The properties are occupied by New Zealand’s leading designer, manufacturer and installer of bespoke engineered building facades, Thermosash Commercial, which has been in the Poland Road site since 1994.
“Due to the need for future expansion, Thermosash has entered into a new three-year lease with a one-year right of renewal, giving an investor or developer market-rate holding income with built-in rental growth. The leases return a combined $790,644 in net annual rent, with fixed annual rental increases of 1 per cent.
“The two freehold properties have a combined site area of 10,208sq m with only 5,838sq m of improvements, providing plenty of scope for future redevelopment.
“Sites of this size very rarely come to the market in tightly held Wairau Valley, which is among the most sought-after industrial precincts on the North Shore.
“This is undoubtedly the best offering in Wairau Valley this year, providing a superb opportunity for a new owner-occupier, investor or developer to secure a premium site.”
The properties are located less than 600m from the Tristram Avenue motorway interchange, providing exceptional accessibly.
Matt Prentice, Industrial Director at Colliers North Shore, says 37-41 Poland Road comprises a 5,838sq m industrial building on a generous 8,589sq m parcel of land.
“The building has a sought-after low office ratio, with nearly 85 per cent dedicated to warehouse and manufacturing areas.
“Built in the 1970s to a high standard, the building has since been expanded and refurbished, and has been very well maintained.
“The main warehouse areas have a medium stud height of some 5.5m to 7m, plus there is a large manufacturing facility in the basement.
“The warehouse accommodates a number of tenant-owned gantry cranes, which can be negotiated as part of the sale if required.
“There is also a substantial reinforced, security fenced concrete hardstand yard to the rear of the building.”
The adjoining property at 20 Hillside Road sits to the northwest of the larger site on Poland Road.
“The property comprises a 1,619sq m site that is one of the only freehold tenanted yards in the Wairau Valley area,” says Prentice.
“Sitting flat, the add-value site allows for future development in a sought-after, low-vacancy area.”
The Poland Road lease will initially return $717,780 in net annual holding income, while the Hillside Road lease will initially return $72,864.
Both sites are zoned Business Light Industry, which allows for a range of lighter industrial activities including storage, distribution, manufacturing and yard-based uses.
Tenant Thermosash Commercial is a wholly New Zealand owned and operated company that has been operating for over 46 years.
It is part of the Thermosash Group of Companies, which also includes Woods Glass, Insite Facades, Stile and WEC.
O’Brien says the Wairau Valley area continues to experience very low vacancy and high demand from occupiers.
“Wairau Valley is an established and popular industrial precinct that benefits from very high levels of amenity and accessibility, with Auckland’s CBD just a 15-minute drive away in off-peak traffic.“Occupiers, investors and developers will not want to miss this chance to secure this exceptional industrial offering with plenty of future potential.”